The accused and his business partner Kiran Mehta had allegedly had fled India after defaulting on payments.

The Central Bureau of Investigation has arrested Kailash Agarwal, the co-promoter of Varun Industries, one of the country’s biggest loan defaulters, The Times of India reported on Sunday. Agarwal was arrested at the Mumbai airport on August 5 when he landed from Dubai, the report said.

A local court has remanded him in custody. Agarwal and his partner Kiran Mehta had allegedly fled India after defaulting on payments worth nearly 2,500 crore. CBI spokesperson RK Gaur told TOI that Agarwal was absconding and evading investigation into the cheating cases.

Agarwal and Mehta allegedly cheated Indian Bank of Rs 300 crore and owe another Rs 1,500 crore to a consortium of other banks, including the Central Bank of India, Syndicate Bank, State Bank of India, United Bank of India, Bank of India, Bank of Baroda, UCO Bank, ARCIL (IDBI Bank) and Allahabad Bank. They borrowed money from these banks from 2007 till 2012. From 2013, they began defaulting, and borrowed several hundred crores from the market and other lenders as well, officials said.

In March 2017, the Enforcement Directorate said it had registered an enforcement case information report against the stainless steel manufacturer and its directors under the Prevention of Money Laundering Act in 2016, before the demonetisation of Rs 500 and Rs 1,000 notes.